In another blow, business confidence across the services sector is its lowest since July 2016, today’s PMI report shows.

Firms are growing increasingly anxious about the risk of Brexit-related disruptions (predictions of long queues and delays at the ports if Britain leaves the EU without a deal)

Duncan Brock, group director at the Chartered Institute of Procurement & Supply, blames the ‘ambiguity’ and lack of clarity around Brexit.

“A reluctance to commit was the message coming through loud and clear from service providers in October as the sector checked in with its worst performance since March and lowest optimism since July 2016.

“Many of the respondents attributed this poor performance and the biggest softening in new order growth since July 2016 to continuing ambiguity around the Brexit negotiations. There were also concerns over the weakness in the UK and global economies which affected client confidence and consumer spending.

Combined with the manufacturing and construction surveys, the October services PMI points to the economy growing at a quarterly rate of just 0.2%, setting the scene for GDP growth to weaken sharply in the fourth quarter.

UK car sales fall 2.9%

Photograph: Matt Cardy/Getty Images

Newsflash: British car sales have fallen again.

Just 153,599 vehicles were registered in October, down 2.9% compared with a year earlier, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). That follows a 20% plunge in October.

The SMMT says sales were hit by new, tougher, pollution rules introduced in Europe this summer.

This has led to shortages of some models, as testing centres are fighting their way through a backlog of vehicles needing certification.

The big picture, though, is that UK car sales are 7% lower this year than in 2017.

SMMT (@SMMT)

The new car market declined in October by -2.9% to 153,599 units with overall market down -7.2% over the year to date. It's hoped the gap will narrow slightly as supply issues resulting from regulatory changes ease. pic.twitter.com/jDNMeOsZcl

The FTSE 100, German DAX and French CAC are all basically unchanged this morning. Spain’s IBEX has risen by 0.35%, but Italy’s FTSE MIB has dipped a little.

Connor Campbell of SpreadEx says:

Further evidence that China’s economy is starting to wilt under the trade war pressure – the country’s latest private sector-assessing Caixin PMI dropped to a 28 month low following a services sector slump – led to a pretty muted open in Europe this Monday.

President Xi: China will become more open

Chinese President Xi Jinping speaks at the opening ceremony of the China International Import Expo (CIIE) in Shanghai. Photograph: STRINGER/EPA

Over in Shanghai, President Xi has vowed that America cannot sink China’s economy.

The Chinese president told a major trade fair that the days of “winner takes all” trade policy is at an end - a non-too-subtle jab at Trump’s approach to negotiations.

Xi also pledged to keep opening up his country’s economy, painting himself as a defender of globalisation.

My colleague Lily Kuo reports:

Xi Jinping has promised to lower import tariffs and improve access to the Chinese market in remarks meant to portray his country as a champion of globalisation as it remains locked in a trade war with the US.

“Protectionism and unilateralism is rising. Multilateralism and the free trade system are under threat … China will not close its door to the world and will only become more and more open”, the Chinese president said on Monday at the beginning of a trade fair in Shanghai.

The speech, ahead of a meeting between Xi and US president Donald Trump at the end of the month on the sidelines of the G20 meeting in Argentina, signalled little improvement in trade ties before that meeting.

Xi claimed China had entered a “new round of high-level opening up” but did not make any concrete concessions likely to satisfy the White House. The Chinese leader reiterated a pledge to enforce intellectual property rights, as well as open up the country’s educational, cultural and telecommunications sectors, something officials have been promising for years, with little action taken.

Xi Jinping promises to open Chinese markets in trade war joust with Trump